U.S. Accuses 11 Blackfeet of Role in Tribal Housing Corruption Story-Date: 06:14 p.m. PST Monday , April 6, 1998 ------------------------------------------------------------ U.S. Accuses 11 Blackfeet of Role in Tribal Housing Corruption By Paul Richardson, Indian Country Today, Rapid City, S.D. Knight Ridder/Tribune Business News BILLINGS, Mont.--Apr. 6--A federal indictment was handed down which accuses 11 people from the Blackfeet Reservation of bribery, theft, breach of contract, breach of warranty, negligence, breach of management agreement, tortious interference with contracts, fraudulent misrepresentation, negligent misrepresentation, bad faith, knowingly representing false payment vouchers and claims, and RICO violations. The charges involve a program that brought $5.5 million in housing assistance to the Blackfeet Reservation, through the Housing and Urban Development Home Program. Under the program, funds are provided to federally recognized Indian tribes and Alaskan Native villages to meet their housing needs. William Harvey Aubrey, Blaze Construction, Inc., Lodgebuilder Management and ten other individuals were indicted by a federal grand jury on charges of fraud, unlawful conversion of federal funds, bribery of a federal official, conspiracy and theft from a tribal organization. The defendants are Gloria Dale Lewis, Brenda Bernadette Todd, Scott F. Sherburne, Cynthia Cecile Kipp, Aloysius Paul Potts, Marlene June Bear Walter, Joseph J. McKay, Lee Roy Wilson, Donald Lee Wilson, and Colleen Catherine Wilson. The investigation began with a tip by a Blackfeet loan officer to the Department of Interior's Office of the Inspector General who forwarded the information to HUD's Office of the Inspector General. Agents and an auditor from the HUD office in Denver have worked together with the FBI, the U.S. Department of Interior's Office of the Inspector General and the Internal Revenue Service. The investigation is continuing and additional indictments are expected. "This joint investigation is a fine example of the effectiveness of cooperative effort among federal law enforcement agencies," U.S. Attorney Sherry Matteucci said. Others involved in the investigation had similar statements in regard to the close ties of each department. "This indictment will send a strong message to those involved with HUD programs that dishonesty and misappropriation of federal funds will not be tolerated," said Jeffrey S. Finn, special agent in charge. The Blackfeet Nation was awarded $5.5 million in Home funds through HUD's Office of Native American Programs. The indictment charges that Mr. Aubrey entered into contracts with the Blackfeet Tribe for Blaze Construction to build 72 homes. Blaze Construction is one of the largest contractors doing work on Indian reservations in the country. Only 51 homes were actually built but all funds were released to the contractor and most of the homes that were built were substandard. According to the indictment, Blaze Construction and Gloria Lewis, the former director of HUD's Indian Housing and Community Development Division in Denver, conspired to have the grant awarded to the Blackfeet Nation and the construction contract awarded to Blaze Construction. The indictment also said that several current and former members of the Blackfeet Tribal Business Council received bribes in the form of money and HUD homes which were given to relatives of certain tribal council members. "The Office of Native American Programs is moving forward aggressively to implement new management systems and new financial oversight and enforcement mechanisms to ensure that all money designated for Indian housing is used wisely and effectively," HUD Secretary Andrew M. Cuomo said. At HUD's Office of Native American Programs we are setting new standards of performance and accountability and where there is fraud or mismanagement in Indian housing, we will find it and put a stop to it," Mr. Cuomo said. As a result of the investigation, HUD has begun debarment action and is immediately suspending the defendants from participating in any new contracts where federal money is involved until the case is decided. The case will be will be prosecuted by Assistant U.S. Attorney Carl Rostad in Great Falls. "These indictments are only a statement of charges only, the defendants are presumed innocent until judged guilty in a court of law," Ms. Matteucci said. All defendants except Gloria Dale Lewis and Brenda Todd appeared for arraignment before United States Magistrate Judge Richard F. Cebull in federal district court in Great Falls, Mont., and entered not guilty pleas. No trial date was set. ----- Visit Indian Country Today on the World Wide Web at http://www.indiancountry.com/ ----- (c) 1998, Indian Country Today, Rapid City, S.D. Distributed by Knight Ridder/Tribune Business News. ------------------------------------------------------------